Headlines
24/7 France/German/EU Manufacturing/Services/Composite PMI, US Manufacturing/Services/Composite PMI, US Existing Home Sales
25/7 Australia Consumer Confidence, Case Shiller Home Price Index, US Consumer Confidence, Richmond Fed Manufacturing Index
26/7 NZ Trade Exports/Imports, Australia CPI, UK GDP, US Weekly Mortgage Applications, US New Home Sales, FOMC Meeting
27/7 German Retail Sales, German Consumer Confidence, US Durable Goods Orders, US Weekly Jobless Claims, Chicago Fed National Activity Index, Kansas City Fed Manufacturing
28/7 Japan Employment, Japan CPI, France GDP, EU Consumer Confidence, US GDP, University of Michigan Confidence
Commentary
OPEC and Non-OPEC Oil producers are meeting, with Russia taking a leading role, in an effort to limit production to reduce stocks. Oil has shown limited upside, in the last week, but remains fundamentally challenged. The oil price is the life blood of Russia and OPEC but demand and oversupply have limited any upside. The USD has been under great pressure, with the EUR up to 1.1650, while the GBP tests 1.3000. The GBP has rallied, despite pressure from Brexit negotiations, but GDP growth will be the next big test. The FOMC will meet in the coming week, with no expectations of any moves, although speculation will drive currency markets. European and US PMI data will give an insight in to the economic conditions in the respective zones. The AUD has settled around 0.7900, with huge gains being digested, while the NZD spiked to 0.7450. The Australian markets will await the release of CPI data and consumer confidence, to gauge the strength of inflationary growth and the state of the consumer.
Paul Bettany
Collinson & Co
0406-744-923